Articles and Blogs

The HHS OIG recently published nearly $2M in self-disclosure settlements with medical providers that involved real estate arrangements. The most common issues involved rental rates that were outside of fair market value or a failure to timely bill and collect for operating expenses and other services being provided by landlords to tenants. A former hospital in... READ MORE

During the Federal Reserve’s annual retreat on Friday, Federal Reserve Chairman Jerome Powell laid the groundwork for interest rate cuts in the near future. In his speech, Powell discussed how inflation has declined significantly and how the labor market has cooled off. A majority of officials at the meeting believe interest rates will be... READ MORE

American Healthcare REIT experienced a seasonal decline in skilled nursing occupancy, but the negative impact was mitigated by strong performance of its senior health campus segment, which is managed by Trilogy Health Services. That segment reported a 24.1% year-over-year same-store NOI growth in Q2. Similarly, Sabra Health Care REIT reported that its senior housing... READ MORE

Tenet Health has agreed to sell 70% of its ownership interest in five hospitals and their affiliated physician groups in Birmingham, Alabama to Orlando Health for $910M. Community Health Systems (“CHS”) reaffirmed its plan to sell $1B worth of hospitals in the near future. Earlier this year, CHS announced its plan to sell hospitals... READ MORE

Healthpeak closed on the sale of a 58-MOB portfolio to Unity Medical and Varde Partners for $674M, with assets located across 16 states. The portfolio comprises 2.76M SF of space at a reported cap rate of 6.8%. Following the recent closure of Walmart Health, Humana’s CenterWell announced it will move into 23 former Walmart... READ MORE

Ardent Health Partners completed its initial public offering and shares are now trading on the New York Stock Exchange under the ARDT ticker symbol. Ardent owns 30 acute care hospitals (18 are joint ventures), operates 200 sites of care and has 1,700 affiliated providers. Ardent’s operating model focuses on joint venture hospitals in mid-sized... READ MORE

Dana-Farber Cancer Institute plans to demolish the Joslin Diabetes Center building in Boston to make way for its recently announced 300-bed, 450,000-sf cancer hospital, which it plans to build with Beth Israel Deaconess for $1.7B. Howard University has announced plans to build a new $650M, 200-bed hospital in Washington, D.C. The University stated its... READ MORE

Walmart Health may be considering a sale of its health care clinics. One source said the retailer may be discussing a sale to Humana. Walmart closed its 51 health care clinics in April as a result of poor financial performance. Healthcare Realty Trust (“HRT”) generated $400M in proceeds from the disposition of several assets... READ MORE

A recent report indicated that the U.S. ambulatory services market is expected to reach $417B by 2030, expanding by 5.4% per year. Primary care offices will remain the largest share of that market (48%), but the surgical specialty segment is expected to grow at the fastest rate. Senior living development is expected to see... READ MORE

Massachusetts is the latest state to propose legislation to restrict health care private equity transactions. The bill covers traditional corporate transactions and hospital sale-leasebacks with real estate investment trusts (“REITs”). The legislation was proposed in light of the Steward Health Care bankruptcy. Steward has eight hospitals in Massachusetts that are leased from Medical Properties... READ MORE